Flash building for flight to quality investors

102 Rosedale Rd on the North Shore is partly occupied by the Ministry of Education. Photo / Supplied

Hosting a government tenant on a long lease, a new, A-grade commercial office building within the fast-developing Albany business precinct has come up for sale at 102 Rosedale Rd on the North Shore.

The building is marketed by Colliers International brokers Janet Marshall and Andrew Hiskens, with deadline private treaty offers closing on June 17.

Northbridge Properties, one of the largest commercial landholders and developers in the Albany area, is selling the two-storey property to focus on a new retail project nearby.

Marshall says Northbridge is a privately owned and operated company, established by Craig Green, and has in excess of $50 million worth of property development in various stages of development.

"The office building at 102 Rosedale Road is exactly the sort of property that is attracting investors in this current market, which has seen a flight to quality fundamentals," Marshall says. "This property will appeal to investors, family trusts and syndicates looking for a superior, stand-alone A-grade office building."

Marshall says the building has split tenancies with the top floor occupied by the Ministry of Education on a new nine-year lease.

The two-storey property was built in 2009 and sits on a 2552sq m site, offering a gross lettable area of 2460sq m.

Security was a priority in Northbridge's development plans, with a high-spec security system in place throughout; a secure climb-proof fence around the basement area; and security gate access to the basement car park which provides 65 parking spaces.

Marshall says the building generates total annual rent of $713,360.

The 1062sq m ground floor comprises two separate, self-contained areas of 517sq m and 545sq m, which could be linked, and is subject to a three-year rental guarantee. Each area has adjacent external terraces and net rental for the entire space is $337,650 per annum plus GST.

The Ministry of Education occupied the 1194sq m first floor after moving from Takapuna late last year. It has 35 secure car parks, of which 33 are in the basement and two outside on the forecourt. The Ministry's nine-year term began on December 1, 2009, with the lease bringing an annual rent of $375,710. This will expire on December 2, 2026 if both of the two four-year rights of renewal are exercised.

Marshall says the Ministry paid for the floor's fit-out to its own exact specifications. "Occupying one floor-plate has allowed the Ministry to consolidate its teams and move close to the motorway, which is critical to the efficient operation of the department," she says.

"The ministry offers a range of services that includes consultation with families and communities and support for children. This required the consolidated office to be close to major transport routes." Marshall says both floors, or each half of the ground floor, could be unit titled, which would provide a buyer with additional flexibility - filling the space while potentially expanding the rental income.

"There is room for a new owner to add value," she says. "And it has a rent underwrite in place for the ground floor, which provides short-term security for a buyer, but it also allows for improvement with a new occupier in the space."

Bordering a council reserve, the property is located in a prime position with frontage on Rosedale Rd, minutes from Albany Centre and just around the corner from the established Apollo Drive and successful Interplex industrial subdivision.

Hiskens says the travelling time from the building to Auckland's CBD is approximately 15 minutes outside of peak hour traffic.

The area is close to the Albany Westfield shopping centre, SkyCity Theatre complex, North Harbour Stadium and Massey University.

The property is well serviced with local cafés, restaurants, bars, gyms and a diverse range of businesses, including a child care centre which has just opened next door.